ASX:MND

Stock Analysis Report

Executive Summary

Monadelphous Group Limited, an engineering group, provides construction, maintenance, and industrial services to the resources, energy, and infrastructure sectors in Australia, New Zealand, Mongolia, and internationally.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Monadelphous Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MND has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.9%

MND

-0.8%

AU Construction

-2.2%

AU Market


1 Year Return

-11.0%

MND

-33.2%

AU Construction

11.6%

AU Market

Return vs Industry: MND exceeded the Australian Construction industry which returned -31.7% over the past year.

Return vs Market: MND underperformed the Australian Market which returned 14.6% over the past year.


Shareholder returns

MNDIndustryMarket
7 Day-9.9%-0.8%-2.2%
30 Day-13.4%-7.5%-2.2%
90 Day-4.6%-11.1%2.2%
1 Year-8.5%-11.0%-30.6%-33.2%16.5%11.6%
3 Year35.9%21.9%-3.0%-12.5%36.2%18.1%
5 Year118.7%62.5%69.7%40.0%46.7%14.1%

Price Volatility Vs. Market

How volatile is Monadelphous Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Monadelphous Group undervalued compared to its fair value and its price relative to the market?

40.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MND (A$16.26) is trading below our estimate of fair value (A$25.87)

Significantly Below Fair Value: MND is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MND is poor value based on its PE Ratio (31.7x) compared to the Construction industry average (15.1x).

PE vs Market: MND is poor value based on its PE Ratio (31.7x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MND is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: MND is overvalued based on its PB Ratio (3.9x) compared to the AU Construction industry average (1.6x).


Next Steps

Future Growth

How is Monadelphous Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MND's forecast earnings growth (19.4% per year) is above the savings rate (1.1%).

Earnings vs Market: MND's earnings (19.4% per year) are forecast to grow faster than the Australian market (9.3% per year).

High Growth Earnings: MND's earnings are forecast to grow, but not significantly.

Revenue vs Market: MND's revenue (11.9% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: MND's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MND's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has Monadelphous Group performed over the past 5 years?

-15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MND has high quality earnings.

Growing Profit Margin: MND's current net profit margins (3.3%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: MND's earnings have declined by -15.1% per year over the past 5 years.

Accelerating Growth: MND's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MND had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Construction industry average (17.1%).


Return on Equity

High ROE: MND's Return on Equity (12.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Monadelphous Group's financial position?


Financial Position Analysis

Short Term Liabilities: MND's short term assets (A$527.4M) exceed its short term liabilities (A$257.3M).

Long Term Liabilities: MND's short term assets (A$527.4M) exceed its long term liabilities (A$77.4M).


Debt to Equity History and Analysis

Debt Level: MND's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: MND's debt to equity ratio has increased from 0.9% to 1.1% over the past 5 years.

Debt Coverage: MND's debt is well covered by operating cash flow (886.5%).

Interest Coverage: MND's interest payments on its debt are well covered by EBIT (22.2x coverage).


Balance Sheet

Inventory Level: MND has a high level of physical assets or inventory.

Debt Coverage by Assets: MND's debt is covered by short term assets (assets are 119.7x debt).


Next Steps

Dividend

What is Monadelphous Group's current dividend yield, its reliability and sustainability?

2.83%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Monadelphous Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.8%marketbottom25%2.4%markettop25%5.5%industryaverage2.9%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: MND's dividend (2.71%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: MND's dividend (2.71%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


Stability and Growth of Payments

Stable Dividend: MND's dividend payments have been volatile in the past 10 years.

Growing Dividend: MND's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.8%), MND's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MND's dividends in 3 years are forecast to be covered by earnings (80.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Rob Velletri 0

16.8yrs

Tenure

AU$1,195,375

Compensation

Mr. Robert Velletri, also known as Rob, has been Managing Director of Monadelphous Group Limited since May 30, 2003 and has been its Executive Director since August 26, 1992. Mr. Velletri joined Monadelpho ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD793.16K) is about average for companies of similar size in the Australian market ($USD939.86K).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Calogero Giovanni Rubino
Executive Chairman of the Board16.8yrsAU$499.06k1.08% A$16.6m
Robert Velletri
MD & Executive Director16.8yrsAU$1.20m2.23% A$34.3m
Philip Trueman
CFO & Company Secretary5.3yrsAU$661.68kno data
Dino Foti
Executive General Manager of Engineering Construction0yrsAU$986.73k0.058% A$883.2k
Zoran Bebic
Executive General Manager of Maintenance & Industrial Services Division5.4yrsAU$934.72kno data
Ella McCarthy
Group Manager of Marketing & Communications0yrsno datano data
Kristy Glasgow
Company Secretary5.2yrsno datano data

5.3yrs

Average Tenure

Experienced Management: MND's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Calogero Giovanni Rubino
Executive Chairman of the Board16.8yrsAU$499.06k1.08% A$16.6m
Robert Velletri
MD & Executive Director16.8yrsAU$1.20m2.23% A$34.3m
Peter Dempsey
Lead Independent Non-Executive Director0yrsAU$165.59k0.083% A$1.3m
Sue Murphy
Independent Non-Executive Director0.7yrsAU$6.49kno data
Christopher Michelmore
Independent Non-Executive Director12.3yrsAU$145.59k0.042% A$650.4k
Helen Gillies
Independent Non-Executive Director3.4yrsAU$135.59k0.0089% A$136.6k
Dietmar Voss
Independent Non-Executive Director5.9yrsAU$135.59k0.0030% A$46.3k

9.1yrs

Average Tenure

61yo

Average Age

Experienced Board: MND's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Monadelphous Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Monadelphous Group Limited
  • Ticker: MND
  • Exchange: ASX
  • Founded: 1972
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$1.535b
  • Shares outstanding: 94.39m
  • Website: https://www.monadelphous.com.au

Number of Employees


Location

  • Monadelphous Group Limited
  • 59 Albany Highway
  • Victoria Park
  • Perth
  • Western Australia
  • 6100
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
MDPH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
8MPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
MNDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
MOPH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2010

Biography

Monadelphous Group Limited, an engineering group, provides construction, maintenance, and industrial services to the resources, energy, and infrastructure sectors in Australia, New Zealand, Mongolia, and internationally. It operates through Engineering Construction, and Maintenance and Industrial Services divisions. The company offers large-scale multidisciplinary project management and construction services, including construction management and execution; civil and electrical construction packages; turnkey design and construction; structural steel, tankage, mechanical works, and process equipment and piping fabrication and installation; fabrication and procurement; modularization and off-site pre-assembly; plant commissioning; demolition and remediation works; and offshore construction of plant and infrastructure. It also provides multidisciplinary maintenance and improvement solutions, such as structural, mechanical, piping, electrical and instrumentation, and civil maintenance services, as well as minor capital works, shutdowns, and operations and facilities management services. In addition, the company offers process and non-process maintenance; front-end scoping, shutdown planning, management, and execution; water and wastewater asset construction and maintenance; irrigation; transmission pipelines and facilities construction; power and water assets operation and maintenance; heavy lift and specialist transport; access; dewatering; and corrosion management services. Monadelphous Group Limited was founded in 1972 and is headquartered in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 10:33
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.